Rural Communities Losing $68 Billion in Economic Value Due to Digital Divide, New NRECA Study Finds

The lack of broadband access for 6.3 million electric co-op households results in more than $68 billion in lost economic value, according to new research by the National Rural Electric Cooperative Association (NRECA). The new report, Unlocking the Value of Broadband for Electric Cooperative Consumer-Members, investigates the cost of the digital divide and the growing economic advantages to America’s rural communities. The study analyzed the value that households place on broadband access. It noted that households in parts of America with broadband access receive, on average, a benefit of $1,950 annually. Applying this value to 6.3 million electric co-op households without broadband, the study finds a total lost value of $68.2 billion to cooperative members nationwide. Importantly, the deployment of broadband would be expected to enable additional economic benefits such as expanded jobs, education and economic growth. None of these factors were examined in the NRECA study.